Date:20/04/2007 URL: http://www.thehindubusinessline.com/2007/04/20/stories/2007042003881000.htm

Back India Inc welcomes foreign trade policy supplement

Our Bureau

`Announcement would boost exports, economic growth'

New Delhi April 19 While welcoming the annual supplement 2007-08 to the foreign trade policy, announced by the Commerce and Industry Minister, Mr Kamal Nath, on Thursday, the industry chambers expressed their satisfaction over the proposed exemption from service tax on export-related services rendered abroad and exemption and remission of service tax on export of goods.

The Confederation of Indian Industry was of the view that the measures announced to boost agricultural product exports, especially value-added variants, are important to promote inclusive growth through exports.

Rupee Fluctuation

The chamber also welcomed the announcement on RBI making it mandatory to allocate 50 per cent concessional credit to the small and medium exporters that have been hit by the fluctuation of the rupee.

The FICCI said that the initiatives announced would not only give a big push to India's exports but also promote labour-intensive sectors.

However, the Assocham said that the policy statement lacked guidelines for preventing rupee appreciation against the dollar that rendered our exports uncompetitive.

The PHD Chamber of Commerce and Industry said that there is urgent need to put in place a comprehensive and WTO-compliant duty neutralisation scheme in place of the Duty Entitlement Pass Book.

Export Promotion Council for EOUs and SEZ units too welcomed the policy. The Chairman of the Council, Mr T. Vasu, said that the announcement would boost exports and lead to overall economic growth in the country.